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The Timken Company to Buy TISCO's Interest in Tata Timken Limited

27 February 1999

The Timken Company to Buy TISCO's Interest in Tata Timken Limited in India

                      Company continues worldwide growth

    CANTON, Ohio, Feb. 27 -- The Timken Company has
agreed to increase its stake in Tata Timken Limited, in Jamshedpur, India, to
80 percent by acquiring the 40 percent stake currently held by The Tata Iron
and Steel Company (TISCO) of India.  The completion of the transaction is
subject to final approvals from Indian government authorities.
    "Increasing Timken's ownership will broaden the venture's customer base
and thus strengthen its position in both domestic Indian markets and Timken's
worldwide markets," says Robert L. Leibensperger, executive vice president,
chief operating officer and president - bearings.  "The investment is part of
our global strategy to capitalize on our core competencies to grow profitably
and increase shareholder value."
    Upon completion of the transaction and pending final government approval,
Tata Timken will operate as Timken India, a subsidiary of The Timken Company.
The Indian public will continue to hold the remaining 20 percent equity in the
venture.
    "Increasing Timken's stake in this joint venture works to everyone's
benefit," says Jon T. Elsasser, group vice president - bearings - rail,
Europe, Africa and West Asia.
    "It fits with TISCO's goal of focusing more sharply on its core
businesses.  At the same time, the transaction will allow us to better serve
customers by aligning Timken India and its associates more closely with Timken
core resources, including dedicated research capabilities."
    The Timken Company invested $48 million on research and development in
1998 with approximately three-fourths of that total being spent on bearing
R&D.  The formation of Timken Engineering and Research - India in Bangalore in
October 1998 continued that commitment, bringing the company's technical
resources closer to customers in that part of the world.
    "The powerful combination of Timken India and Timken's research
capabilities gives us a platform for quicker response to customer needs and
continued growth in the region," says Mr. Elsasser.  "Timken India and its
customers will benefit from the increased technical and engineering support
from the Bangalore research center, as well as from our research facilities in
the U.S. and Europe.  Only with this additional ownership of the Indian
bearing operations can the company commit to licensing our latest technology
and process advancements."
    The agreement to create Tata Timken, The Timken Company's first joint
venture, was signed in 1987.  Production started in the newly constructed Tata
Timken plant in 1992.  The operation uses cellular manufacturing, which
provides the flexibility to produce parts with short lead times.  The plant
currently makes single-row tapered roller bearings for trucks, farm tractors
and industrial applications.  The operation also produces AP cartridge
bearings for rail applications.
    The Timken Company (http://www.timken.com) is a leading international
manufacturer of highly engineered bearings and alloy steels with operations in
25 countries.  The company employs 21,000 people worldwide and reported 1998
sales of more than U.S. $2.6 billion.